Managing advanced deposits and deferred revenue is critical for accurate financial reporting and compliance. This guide explains the concepts, setup, and best practices for reconciliation in Sharper, with troubleshooting tips for common issues.
1. Understanding Advanced Deposits vs. Deferred Revenue
Advanced Deposits are funds collected before a service is rendered (e.g., reservation deposits). These should be held in a liability account until earned.
Deferred Revenue is income received for goods/services to be delivered in the future. It is recognized as revenue over time, according to the schedule set in Sharper.
2. Setting Up Deferred Revenue Schedules
Deferred schedules automate the accrual and recognition of revenue.
Configuration Steps:
Go to the relevant module (e.g., Marina, Campground).
Select Products and choose the product to defer.
In the Accounting section, set the account to your Unearned or Deferred Account.
Under Booking Setup, enable Deferred Income and set the frequency (Monthly, Daily, etc.).
Assign the correct Sales Income Account for recognized revenue.
Save changes.
Note: Manually created invoices do not generate deferred schedules automatically; add them after saving.
3. Generating and Interpreting Reports
Advanced Deposits Report: Shows all outstanding deposits. If the report fails to load or errors out, contact support for troubleshooting.
Deferred Revenue Reports: Display balances and recognition schedules. Ensure all products and invoices are properly configured for deferred recognition.
Reconciliation: Compare the balances in Sharper’s ledgers to your accounting system (e.g., QuickBooks). Discrepancies often arise from missing schedules, manual entries, or credit memos without recognition schedules.
4. Troubleshooting Common Issues
Balances Not Tying Out:
Check for missing or incorrect deferred schedules, especially for invoices imported from other systems.
Review for manual entries or credit memos that bypass the deferred schedule.
Use Excel or reconciliation tools to match ledger balances to reports.
Deposits Not Moving to Revenue:
Ensure check-in/check-out processes are followed so deposits are released and recognized.
Verify product and booking setup for correct account mapping.
One-Sided Entries:
Sometimes, clearing deferred revenue accounts requires one-sided journal entries. Document these adjustments and date them appropriately.
Reporting Errors:
If reports do not populate or error out, escalate to support with details and screenshots.
5. Best Practices
Consistent Setup: Always configure products and invoices for deferred revenue at the time of creation.
Regular Reconciliation: Schedule monthly reviews to compare Sharper ledgers with your accounting system.
Documentation: Keep detailed notes on manual adjustments, credit memos, and journal entries for audit trails.
Training: Ensure staff understand the difference between deposits and deferred revenue, and the importance of following check-in/check-out workflows.
If you encounter persistent issues or discrepancies, please contact your finance team or submit a support ticket with detailed examples and supporting documentation.